Power transmission industry ends 2013 with slight growth

The PTDA Business Index reading for the fourth quarter of 2013 came in at 60, which is higher than the 52 reading of the previous quarter, according to the Power Transmission Distributors Association. The survey participants were more positive in their outlook for 2014. When surveyed in mid-2013 about the 2014 outlook, participants anticipated 5% growth. In the fourth quarter of 2013 survey conducted last month, survey participants now anticipate 7% growth in 2014.

The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.

The report includes distributor and manufacturer breakout data in addition to historical data. It is conducted jointly by PTDA and Cleveland Research Company and modeled after the Purchasing Managers Index. The report tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices, and backlog in the power transmission/motion industry to arrive at an overall index.